UAE lenders step up debt issuance amid record GCC financing

GCC banks are on course to set another record in US dollar debt issuance this year, with the UAE playing a pivotal role in the region’s expanding capital markets.

- Issac John [e-mail]

According to Fitch Ratings, total issuance is already close to $55 billion in 2025, well above the $36 billion raised last year, and is expected to surpass $60 billion by year-end, or about $40 billion excluding certificates of deposit. This surge reflects large upcoming maturities, robust credit growth, and favourable financing conditions.

Saudi banks have been the most active, raising $28.3 billion so far, while UAE lenders follow with $11 billion. Qatari and Kuwaiti banks issued $8 billion and $7 billion respectively. Excluding certificates of deposit, GCC banks have already tapped the markets for $36 billion, easily outpacing expectations set at the beginning of the year.

The UAE's debt activity is largely focused on senior unsecured instruments to refinance maturing obligations and diversify funding bases. This includes tapping demand for ESG-linked bonds and sukuk, and exploring the Taiwanese Formosa market via floating-rate notes. UAE banks alone have raised about $3.5 billion through Formosa notes in 2025, underscoring their appetite to broaden investor reach. Analysts expect issuance from the UAE to remain steady, supported by solid liquidity, a healthy net foreign asset position, and continued demand for refinancing.